A record low allowed return The 3.95% real CPIH base line return on equity, which is post a 25bps expected outperformance wedge, is just under the 4.0% we were assuming in our model and the lowest ever set by OFGEM. Although a sharp cut vs the returns allowed and achieved in the current regulatory period, it is broadly consistent with the prevailing - and historically unique - monetary conditions. Up to 300bps outperformance is allowed before 50:50 profit sharing with customers kicks in. The final determination is due by December 2020 and we expect SSE to argue both for higher returns and higher baseline Totex. It is notable that one of the toughest regulatory reviews coincides with a period of political rhetoric about increased investment requirements (net zero, hydrogen, ''green'' recovery). Politicians across Europe might need to give firmer signals about their commitment towards decarbonisation in order for regulators to reflect those in capex allowance plans. Updating estimates OFGEM''s draft determination, which for SSE is relevant for its wholly owned electricity transmission business (SHET) as well as its 33% equity stake in SGN (gas distribution), was broadly in line with our assumptions. We therefore have only made small tweaks to our estimates, including a slightly higher than forecasted ''transfer'' adjustment to the opening SHET RAV in the new regulatory period. We have also made tweaks to our offshore wind modelling and to our below-the-line PandL assumptions following the release of the annual report. Reiterate Outperform Although we won''t have the company''s view on the full financial implications of the regulatory review until after the Final Determination in December, from our point view we do consider this as the lifting of the final overhang on the equity story. We expect SSE to progress with its strategy as presented at its 2019/20 results. We adjust our target price lower to account for the upcoming ex-dividend day (July...